Operator: Ladies and gentlemen, thank you for standing by and welcome to the Public Storage Fourth Quarter 2011 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you.

I'd now like to turn the conference over to Mr. Clemente Teng. Sir, you may begin your conference.

Clemente Teng - VP, IR: Good morning, and thank you for joining us for our fourth quarter earnings call. Here with me today are Ron Havner and John Reyes. All statements other than statements of historical facts, included in this conference call are forward-looking statements, subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected in these statements.

These risks and other factors that could adversely affect our business and future results are described in today's earnings press release, and in our reports filed with the SEC. All forward-looking statements speak only as of February 24, 2012, and we assume no obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.

A reconciliation to GAAP or the non-GAAP financial measures we are providing on this call is included in our earnings press release. You can find our press release, SEC reports, and an audio webcast replay of this conference call on our website at www.publicstorage.com.

We recently completed several capital transactions in the first quarter. We issued $460 million of 5.9% preferred stock, a record low coupon rate for us. We also announced the redemption of three preferred series totaling $357 million having a blended rate of 6.75%. There will be a charge recorded in the first quarter associated with redemptions of about $13 million or $0.08 per share.

As a result of recent capital transactions, preferred dividends are expected to be about $4 million lower in the first quarter. In November, Shurgard Europe completed the refinancing of its joint venture loans with a new €215 million term loan. This new loan, which will mature in November of 2014, has an interest rate of about 125 basis points lower than the joint venture loans. We also extended the maturity date of our 9% loan to Shurgard Europe to February 2015. We expect nominal pay downs on our loan in 2012.

We increased our quarterly dividend to $1.10 per share, representing an increase of 16%. Since 2007, our dividend has more than doubled. Our consistent long-term dividend policy has been to distribute only our taxable income.

Transcript Call Date 02/24/2012

Operator: Christine McElroy, UBS.

Christine McElroy - UBS: I realize that you wouldn't give specific guidance on this, but I'm wondering given the fundamental trends appear to be slowing in the European portfolio. I am wondering if you could talk about expectations for performance this year. Do you think that revenue growth can remain positive in 2012 and can you talk about the success that you have had pushing existing customer rents in Europe versus what you have been able to do in the U.S.?

Ronald L. Havner, Jr. - Chairman, CEO and President: Christie, well I think in 2012 we'll have a pretty challenging environment in Europe, whether we have positive revenue or NOI growth. I am not going to comment on that, but I think it will be a challenging operating environment. France our largest market has slowed down. The bright spot I think for is in Europe in 2011 and going into 2012 is London. We rolled out a new website, new online pricing last year in London and we were able to drive occupancies to 87% in fourth quarter up from 83.7% last year. So a nice uptick in occupancy and you could tell at 87% I think that's higher than the overall portfolio average of about 85% for the quarter, so bright spot is London.

Christine McElroy - UBS: Are you pushing existing customer rents?

Ronald L. Havner, Jr. - Chairman, CEO and President: Yes, we moved the pricing function for Europe here in Glendale in June of last year and we've got a nice pop on rental rate increases in Europe in Q3. With respect to what we're going to do in Europe in 2012, John, do you have any…?

John Reyes - SVP and CFO: We're going to continue to send out increases Christie, just like what was happening in last year, I probably sent out more to existing tenants and probably little more aggressive on the rates than what was done last year.

Operator: Michael Knott, Green Street Advisors

Michael Knott - Green Street Advisors: Ron, I just would like to – if you want to comment on sort of your general outlook for the business in 2012 given sort of the juxtaposition of seemingly better economy a little bit of momentum of your business compared to maybe some concerns on oil and gas prices?

Ronald L. Havner, Jr. - Chairman, CEO and President: I don't think I am quite capable of commenting on the impact of oil prices on the economy or us. What we're seeing in January and into February is good momentum on the business in terms of move-in volumes. We're gaining pricing power and our occupancies are up over last year which in January and in February. So far into Q1 we're feeling pretty good. I think the occupancy spread will narrow as the year goes along which we trounced on I think in the last quarter, so this will be a year of the pricing and rental rate increases to existing customers, but we're feeling pretty good.

Michael Knott - Green Street Advisors: How over the last few months and maybe at the beginning of 2012 compared to what you would've thought?

Michael Mueller - JPMorgan: Hi. It looks like you're finding some stuff to buy. I think you have about $40 million under contract. Can you just talk about what you're seeing in the acquisition market, are you seeing more product, less product, just any comments there?

Ronald L. Havner, Jr. - Chairman, CEO and President: Yeah, Michael, we had David Doll here so I'll let him touch on that.